STATEMENT OF REP. JERRY WELLER
Testimony Before the House Committee on Ways and Means
Hearing on Reducing the Tax Burden
January 28, 1998
I want to commend you for holding these hearings on inequities in the tax code and
thank you for inviting my colleagues and I to testify on what is arguably the most immoral
provision in our tax code...the marriage tax penalty
Last night, President Clinton gave his State of the Union Address outlining many of the
things he wants to do with the budget surplus.
A surplus provided by the bipartisan budget agreement which:
While President Clinton paraded a long list of new spending proposals -- without
mentioning the accompanying increase in bureaucracy and red tape -- we believe that a top
priority should be returning the budget surplus to America's families as additional
middle-class tax relief.
This Congress has given more tax relief to the middle class and working poor than any
Congress of the last half century.
I think the issue of the marriage tax penalty can best be framed by asking these
questions: Do Americans feel its fair that our tax code imposes a higher tax penalty on
marriage? Do Americans feel its fair that the average married working couple pays almost
$1,400 more in taxes than a couple with almost identical income living together outside of
marriage-- is it right that our tax code provides an incentive to get divorced? In fact,
today the only form one can file to avoid the marriage tax penalty is paperwork for
divorce.
Since 1969, our tax laws have punished married couples when both spouses work. For no
other reason than the decision to be joined in holy matrimony, more than 21 million
couples a year are penalized. They pay more in taxes than they would if they were single.
Not only is the marriage penalty unfair, it's immoral that our tax code punishes society's
most basic institution. The marriage tax penalty exacts a disproportionate toll on working
women and lower income couples with children.
Let me give you an example of how the marriage tax penalty unfairly affects middle
class married working couples. For example, a machinist, at a Caterpillar manufacturing
plant in my home district of Joliet, makes $30,500 a year in salary. His wife is a tenured
elementary school teacher, also bringing home $30,500 a year in salary. If they would both
file their taxes as singles, as individuals, they would pay 15%.
But if they chose to live their lives in holy matrimony, and now file jointly, their combined income of $61,000 pushes them into a higher tax bracket of 28 percent, producing a tax penalty of $1400 in higher taxes.On average, America's married working couples pay $1,400 more a year in taxes than individuals with the same incomes. That's serious money.
Particularly if you think of it in terms of:
- a down payment on a house or a car,
- one years tuition at a local community college, or
- several months worth of quality child care at a local day care center.
To that end, Congressman David McIntosh and I have authored the Marriage Tax
Elimination Act.
It would allow married couples a choice in filing their income taxes, either jointly or
as individuals -- which ever way lets them keep more of their own money.
Our bill already has the support of 232 Members of the House and a similar bill in the
Senate also enjoys widespread support.
It isn't enough for President Clinton to suggest tax breaks for child care. The
President's child care proposal would help a working couple afford, on average, three to
four weeks of day care. Elimination of the marriage tax penalty would give the same couple
the choice of paying for three to four months of child care - or addressing other family
priorities. After all, parents know better than Washington what their family needs.
We fondly remember the 1996 State of the Union address when the President declared
emphatically that, quote "the era of big government is over."
We must stick to our guns, and stay the course.
There never was an American appetite for big government.
But there certainly is for reforming the existing way government does business.
And what better way to show the American people that our government will continue along
the path to reform and prosperity than by eliminating the marriage tax penalty.
Ladies and Gentleman, we are on the verge of running a surplus. It's basic math.
It means Americans are already paying more than is needed for government to do the job
we expect of it.
What better way to give back than to begin with mom and dad and the American family --
the backbone of our society.
We ask that President Clinton join with Congress and make elimination of the marriage
tax penalty... a bipartisan priority.
Of all the challenges married couples face in providing home and hearth to America's
children, the U.S. tax code should not be one of them.
Lets eliminate The Marriage Tax Penalty and do it now!
Thank you, Mr. Chairman.